Consumer Markets and Buyer Behavior

Principles of Marketing Global Edition Kotler and Armstrong Chapter 5:

Learning Objectives

• Objective 1: Define the consumer market and construct a simple model of consumer buyer behavior.

• Objective 2: Name the four major factors that influence consumer buyer behavior.

Learning Objectives

• Objective 3: List and define the major types of buying decision behavior and the stages in the buyer decision process.

• Objective 4: Describe the adoption and diffusion process for new products.

Learning Objective 1

• Define the consumer market and construct a simple model of consumer buyer behavior.

Model of Consumer Behavior

Consumer Markets and Buyer Behavior

Consumer buyer behavior is the buying behavior of final consumers—individuals and households that buy goods and services for personal consumption.

Consumer markets are made up of all the individuals and households that buy or acquire goods and services for personal consumption.

Figure 5.1 The Model of Buyer Behavior

Learning Objective 1

• Define the consumer market and construct a simple model of consumer buyer behavior.

Model of Consumer Behavior

Consumer Markets and Buyer Behavior

Learning Objective 2

• Name the four major factors that influence consumer buyer behavior.

Characteristics Affecting Consumer Behavior

Factors Influencing Consumer Behavior

Culture is the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.

Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations.

Copyright © 2016 Pearson Education, Inc. 5-12 Characteristics Affecting Consumer Behavior Cultural Factors Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors.

• Measured as a combination of occupation, income, education, wealth, and other variables

Major American Social Classes • Upper Class • Middle Class • Working Class • Lower Class

Groups and Social Networks

Membership Aspirational Reference Groups Groups Groups • Groups with • Groups an • Groups that direct individual form a influence wishes to comparison and to which belong to or reference a person in forming belongs attitudes or behavior

• Online social networks

• Buzz marketing

• Social media sites • Virtual worlds • Word of mouth • Opinion leaders

• Family is the most important consumer- buying organization in society.

• Role and status can be defined by a person’s position in a group.

Personal Factors

• Age and life-cycle stage

• PRIZM Lifestage Groups system • 66 segments • 11 life-stage groups

Personal Factors

Occupation affects the goods and services bought by consumers.

Economic situations include trends in:

Personal Interest Spending Savings income rates

Lifestyle is a person’s pattern of living as expressed in his or her psychographics.

Personality refers to the unique psychological characteristics that distinguish a person or group.

Brand Personality Traits

Sincerity Excitement Competence

Sophistication Ruggedness

Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes

Psychological Factors

A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction of the need.

Motivation research refers to qualitative research designed to probe consumers’ hidden, subconscious motivations.

Figure 5.4 - Maslow’s Hierarchy of Needs

Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world.

Perceptual Processes

Selective Selective Selective attention distortion retention

Psychological Factors

Selective attention is the tendency for people to screen out most of the information to which they are exposed.

Selective distortion is the tendency for people to interpret information in a way that will support what they already believe.

Selective retention is the tendency to remember good points made about a brand they favor and forget good points about competing brands.

Psychological Factors • Learning is the change in an individual’s behavior arising from experience and occurs through the interplay of:

Drives Stimuli Cues Responses

Reinforcement

A belief is a descriptive thought that a person has about something based on: • knowledge • opinion • faith

An attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea.

Consumer Markets and Buyer Behavior

Learning Objective 2

• Name the four major factors that influence consumer buyer behavior.

Characteristics Affecting Consumer Behavior

Learning Objective 3

• List and define the major types of buying decision behavior and the stages in the buyer decision process.

Types of Buying Decision Behavior

The Buyer Decision Process

Complex buying behavior

Dissonance-reducing buying behavior

Habitual buying behavior

Variety-seeking buying behavior

FIGURE | 5.5 Four Types of Buying Behavior

FIGURE | 5.6 Buyer Decision Process

Need Recognition

Need recognition is the first stage of the buyer decision process, in which the consumer recognizes a problem or need triggered by: • Internal stimuli • External stimuli

Information search is the stage of the buyer decision process in which the consumer is motivated to search for more information.

• Sources of information: • Personal sources • Commercial sources • Public sources • Experiential sources

Alternative evaluation is the stage of the buyer decision process in which the consumer uses information to evaluate alternative brands in the choice set.

Purchase decision is the buyer’s decision about which brand to purchase.

• The purchase intention may not be the purchase decision due to: • Attitudes of others • Unexpected situational factors

Postpurchase behavior is the stage of the buyer decision process in which consumers take further action after purchase, based on their satisfaction or dissatisfaction.

Cognitive dissonance is buyer discomfort caused by postpurchase conflict.

Learning Objective 3

• List and define the major types of buying decision behavior and the stages in the buyer decision process.

Types of Buying Decision Behavior

The Buyer Decision Process

Learning Objective 4

• Describe the adoption and diffusion process for new products.

The Buyer Decision Process for New Products

The adoption process is the mental process an individual goes through from first learning about an innovation to final regular use.

• Stages in the adoption process include:

Awareness Interest Evaluation Trial Adoption

The Buyer Decision Process for New Products Individual Differences in Innovativeness

• Innovators • Early Adopters • Early Mainstream • Late Mainstream • Lagging Adopters

The Buyer Decision Process for New Products Individual Differences in Innovativeness

FIGURE | 5.7 Adopter Categories Based on Relative Time of Adoption of Innovations

The Buyer Decision Process for New Products Influence of Product Characteristics on Rate of Adoption

Relative Compatibility Complexity advantage

Divisibility Communicability

Learning Objective 4

• Describe the adoption and diffusion process for new products.

The Buyer Decision Process for New Products